If you’ve ever Googled “best personal finance books to read,” you’ve probably seen the title “Rich Dad, Poor Dad” near the top of the results. Find out 5 key business lessons to learn from “Rich Dad, Poor Dad”:
Robert T. Kiyosaki and Sharon L. Lechter, wrote the book “Rich Dad, Poor Dad,” which since its release in 2002, is said to have sold more than 32 million copies in 40 languages and 40 countries.
“Rich Dad, Poor Dad” is an allegory about Robert Kiyosaki and his two fathers, and how growing up with them influenced his financial ideas. Kiyosaki’s biological father, a highly educated college professor, is the “poor dad.” Kiyosaki’s closest friend’s father is a wealthy entrepreneur who owns hundreds of firms. Both fathers give contradictory financial advise.
Mentality of “poor dad”
“Poor dad” thinks that one should work for money as a single-salaried employee in a secure position, and that one’s wealth is heavily influenced by one’s familial background. He feels that reading and learning from great individuals is one of the most important things you can do to financially survive (or gain riches). Many individuals believe that this mindset might trap a person into working a job they don’t like but are willing to do because they need to pay their bills.
Mentality of a “rich dad”
“Rich dad” recommends Kiyosaki to find a job so that he can learn the skills necessary to become an entrepreneur. Wealth is created via hands-on learning and diverse revenue streams. When the “poor dad” recommends climbing the ladder, the “rich dad” laughs and replies, “Why not own the ladder?”
While the advice in “Rich Dad, Poor Dad” — and from Kiyosaki himself — has sparked some controversy, the book does provide a number of key lessons that can be valuable to anybody trying to widen their ideas on money.
Here are some key business lessons to learn from “Rich Dad, Poor Dad”:
1. Master the art of selling
A woman with a master’s degree in English literature asks Kiyosaki in the book how she may become a best-selling author. He advises her to take a sales training course. “You’re not serious, are you?” she exclaims, stunned by his response. “There’s a reason successful books say ‘best-sellingauthor,’ not ‘best-writingauthor,” Kiyosaki adds, picking up a book on the coffee table.
He explains that if you want to be wealthy, you must be able to sell. Get out of your comfort zone, sell, and network. You’ll never be able to run your own business if you don’t.
2. The wealthy purchase assets rather than liabilities
An asset is anything that generates income for you, such as a bond or a home (that you purchase and then rent out to other people). A liability is anything that costs you money because its worth depreciates over time, such as a high-priced car or television set. It’s critical to be able to tell the difference between the two.
“The wealthy acquire assets. The impoverished just have bills to pay. The middle class buys liabilities believing them to be assets,” writes Kiyosaki.
3. Your greatest obstacles to achievement are fear and self-doubt
The major distinction between the rich and the poor is how they deal with fear. “Poor dad” protects it and avoids danger.
This viewpoint can be costly in the long run. “In the real world, it’s often not the smart who go ahead, but the daring, wealthy dad” explains Kiyosaki.
4. Always consider opportunities
“I can’t afford that,” the “wealthy dad” prevents his children from saying. Rather, he instructs students to ask, “How can I afford it?” The first phrase turns off a person’s brain, removing the need for them to think. The second one introduces “opportunities, excitement, and dreams.”
It compels the brain to look for answers. Kiyosaki discovers that “the basic reason the bulk of the poor and middle class are economically conservative—that is, ‘I can’t afford to take risks’—is because they lack a financial basis.”
5. Only experience can help you learn financial literacy
“Studying hard and obtaining good marks is the only way to secure a good career at a big business with outstanding perks,” says the well-educated “poor dad.” However, according to the “rich dad,” the most important goal is to grasp how money works so that you can make it work for you. Kiyosaki believes that in order to be financially savvy, you must master accounting, investment, markets, and the law. The more talents you learn, the more successful you will be.